Employee Classification Controversy

Categories: Employment Law

A current class action suit in San Francisco urges the court to declare that drivers for Uber are employees, as opposed to independent contractors. A controversy has arisen as to whether employees in companies like Uber and its rival Lyft should treat the drivers as employees instead of as contractors. The case outcome will have implications on the modern trend to treat workers as contractors.

If the court decides that workers for companies like Uber and Lyft are employees, as opposed to independent contractors, then presumably those companies will have to make payroll deductions, pay for waiting time, provide for overtime, provide workers compensation and unemployment insurance, and adhere to anti-discrimination laws, to which they should adhere to in any event.

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